Massachusetts Real Estate Pre-Licensing – Key Vocabulary

A comprehensive set of vocabulary flashcards covering the principal Massachusetts-specific terms, laws, and concepts a pre-licensing student must know for the state portion of the real-estate exam.

Board of Registration of Real Estate Brokers & Salespersons

The five-member state board (part of the Division of Occupational Licensure) that issues, administers, and enforces Massachusetts real-estate licenses.

Salesperson License (MA)

Entry-level real-estate license; holder must affiliate with a broker, cannot accept direct client payments, and must complete a 40-hour course and pass the state exam.

Broker’s License (MA)

Advanced license allowing independent practice, direct client payment, and escrow handling; requires 3 years’ salesperson experience, another 40-hour course, passing a broker exam, and a $5,000 bond.

REALTOR® (Massachusetts)

A licensed salesperson or broker who joins a local chapter of the Massachusetts Association of REALTORs® (MAR); membership is optional but offers benefits.

Littoral Rights (MA)

Ownership rights along lakes or oceans that extend from the mean high-water line to the mean low-water line or 100 rods (1,650 ft), whichever is less; public easement exists for navigation, fishing, fowling, and passing.

Tenancy by the Entirety (MA)

Joint tenancy for married couples that adds $125,000 automatic homestead protection (up to $1 million with filing) and creditor safeguards; converts to tenancy in common upon divorce unless stated otherwise.

6D Closing Certificate

Document required at every Massachusetts condominium sale certifying that all condo fees are paid up to the closing date.

Tenancy at Will – 30-Day Rule

Verbal or written rental with no fixed term; in Massachusetts either party must give 30 days’ notice to terminate.

Chapter 40A (Zoning Enabling Act)

Massachusetts statute enabling municipalities to create and enforce zoning ordinances.

Chapter 21E

Massachusetts Oil & Hazardous Material Release Prevention and Response Act (state Superfund law) regulating hazardous waste; provides 21E Certificates showing land is uncontaminated.

21E Certificate

Document certifying that a Massachusetts property is free from oil or hazardous-material contamination.

Wetlands Protection Act

MA law requiring a 100-ft buffer zone (minor work after 50 ft) around DEP-designated wetlands; enforced by DEP and local conservation commissions.

Rivers Protection Act (1996)

Amendment protecting land within 200 ft (25 ft in dense areas) of rivers/streams not already covered as wetlands; requires conservation-commission approval for development.

Statutory Right of Redemption (MA)

Former owner’s right to reclaim tax-foreclosed property within six months of the foreclosure sale by paying taxes and interest.

Recording Stamps

Massachusetts excise tax on recorded deeds: $2.28 per $500 (Barnstable Co. $3.24); seller pays based on cash consideration above $100.

Quitclaim Deed (MA)

Massachusetts version of a special-warranty deed that conveys title with limited warranties against the grantor’s own acts.

E-Sign Act

Federal law granting electronic signatures the same legal standing as handwritten ones.

Massachusetts UETA

State counterpart to the E-Sign Act, validating electronic signatures and records in MA transactions.

Doctrine of Laches

Equitable principle barring legal claims after unreasonable delay even if the statute of limitations has not expired.

Security-Deposit Rules (MA)

Landlords may collect first and last month’s rent, one-month security deposit, and a reasonable lock fee; deposit must earn ≤5 % interest and be held in escrow; statement of condition required.

Massachusetts Lead Paint Law – Sales

For pre-1978 homes, buyers must receive EPA brochure and MA Lead Notification form and are given a 10-day inspection right; owners must de-lead within 90 days if a child under 6 resides or a pregnancy occurs.

Massachusetts Lead Paint Law – Rentals

All pre-1978 rentals occupied by children under 6 must be tested and deleaded; landlords pay all deleading and relocation costs and may not refuse tenants with children.

Massachusetts Smoke-Detector Rules

Sale of pre-1975 1-2-family homes requires photoelectric battery detectors; post-1975 construction must have hard-wired interconnected units; >2008 attached garages need hard-wired heat detectors; 10-year sealed battery units now mandated.

Carbon-Monoxide Detector Law (2006)

All MA homes with fuel-burning equipment or attached garages must have CO detectors on every living-space level.

Implied Warranty of Habitability (MA New Construction)

Automatic 3-year warranty that new homes will be structurally sound and weather-tight; cannot be waived.

MGL Chapter 93A

Massachusetts Consumer Protection Act prohibiting unfair/deceptive business practices; requires 30-day demand letter; minimum double and up to treble damages plus fees.

CROWN Act (MA, 2022)

Extends race discrimination protections to include natural or protective hairstyles such as braids, locks, twists, and Bantu knots.

Massachusetts Protected Classes

Federal classes plus age, marital status, sexual orientation, gender identity/expression, veteran status, public assistance, genetic information, ancestry, and children under 6 in lead-paint context.

MCAD (Mass. Commission Against Discrimination)

State agency enforcing fair-housing law; a first violation leads to automatic 60-day license suspension, a second within two years to 90 days.

Housing Choice Voucher Program (Section 8) – MA Rule

Landlords must accept Section 8, MRVP, and VASH vouchers; source of income is a protected class.

MassHousing

Quasi-public agency providing financing and programs for affordable housing and first-time home-buyers in Massachusetts.

Broker Bond

$5,000 surety bond each MA broker must post to protect clients against escrow-fund losses (not insurance for the broker).

Escrow (Trust) Account

Special bank account where MA brokers hold client funds; records kept at least three years and subject to Board inspection.

Broker of Record

Designated officer holding a broker license for an entity (LLC, corporation) practicing real estate; must notify Board if replaced.

Inactive Licensee

Person who has renewed but not completed CE; may only collect referral fees but cannot practice real estate in MA.

Reciprocity (MA)

Full reciprocity with CO, CT, GA, IA, MS, NE, NM, PA, RI (plus 3-hr lead course), TN, WV; partial with NH; MA is a physical-location state barring out-of-state licensees from practicing within MA.

Registration of Promotional Sale of Out-of-State Properties

Developers must register with the MA Board and note registration in ads; MA brokers must notify Board within seven days of taking such listings.

Mandatory Agency Disclosure (MA)

Form given at first personal meeting to disclose agent’s role (seller, buyer, dual, designated, facilitator); copy kept three years.

Seller’s Agent (MA definition)

Broker/agent owing undivided loyalty, confidentiality, obedience, full disclosure, and accountability exclusively to the seller.

Buyer’s Agent (MA definition)

Broker/agent owing undivided loyalty, confidentiality, obedience, full disclosure, and accountability exclusively to the buyer.

Disclosed Dual Agent

Broker representing buyer and seller with informed written consent; owes honesty and limited confidentiality but not undivided loyalty.

Designated Agent

Individual agent appointed by broker to represent one party; broker becomes dual agent if another designee represents the other party.

Facilitator (Transaction Broker)

Non-agent who assists both sides without fiduciary loyalty; must disclose known defects and deal honestly.

Rental Fee Disclosure

Written notice at first meeting stating amount, timing, and payer of any rental fee; tenant and agent sign; copy kept three years.

License Renewal (MA)

Every two years on licensee’s birthday; requires 12 hours of approved continuing education.

Surety vs. Fidelity Bond (context)

MA broker bond is a surety bond protecting the public (not the broker) if escrow funds are lost.

License Hearings – 14-Day Notice

Board must give at least 14 days’ written notice before a public disciplinary hearing; decisions appealable within 30 days.

Net Listing (Prohibited)

Listing where commission equals selling price minus seller’s desired net; illegal in Massachusetts.

Brownfields Act (1998)

MA law offering liability relief and incentives for cleanup and redevelopment of contaminated commercial/industrial sites.

Title V Inspection

MA rule requiring septic system inspection within 2 years before sale (3 years if pumped yearly) or 6 months after sale if weather delays.

Underground Storage Tank (UST) Ban

MA prohibits most buried chemical or fuel tanks under Chapter 21E; removal requires DEP and fire-department oversight.

Asbestos – MA Rule

Must be removed or encapsulated if friable or in poor repair; removal requires licensed contractors, DEP/DLS notice, and special disposal.

Doctrine of Good Faith (MA Agency)

Under MGL 93A, brokers owe clients fair and honest dealing in addition to fiduciary duties.

One-Stop Licensing (MA)

Policy allowing candidates to receive their real-estate license immediately after passing the exam, provided they pay the fee and meet all prerequisites.

Exam Passing Standard (MA)

Four-hour multiple-choice exam; must score 70 % or better on both national and state sections; only failed section retaken.

Buffer Zone – Wetlands

Area extending 100 ft from a DEP-designated wetland where building is restricted; minor work may be allowed after 50 ft.

Lease Recording Rule (MA)

Any lease longer than seven years must be recorded at the registry of deeds.

Broker Experience Requirement

Applicant must have worked as a salesperson for three years averaging 25 hours/week before applying for a MA broker license.

Priority Lien – Real Estate Taxes

Municipal property-tax lien that supersedes all other liens and may lead to tax foreclosure if unpaid.

Bait-and-Switch Advertising (Prohibited)

Advertising property that is not actually available in order to attract buyers; MA brokers must keep proof listings were available at ad time for three years.